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The Rise of Data Centers in Vietnam

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By Nguyen Ayi

As Vietnam’s economy continues to grow, so does the demand for data centers. With the rise of e-commerce, social media, and cloud services, the need for reliable and secure data storage and management has become increasingly vital. In this article, we will explore the growth of data centers in Vietnam and their impact on the country’s digital transformation.

Vietnam’s Digital Transformation Journey

Vietnam has made significant progress in its digital transformation journey, with the government aiming to create a digital economy worth $43 billion by 2025. This ambitious goal has been fueled by the country’s young and tech-savvy population, which has embraced new technologies at a rapid pace. Vietnam’s internet penetration rate has reached 70%, and the country has over 60 million smartphone users.

However, this rapid digitalization has also brought new challenges, including the need for robust and secure data storage and management. Vietnam’s data center market is still in its early stages, but it is growing rapidly to meet this challenge.

The Growth of Data Centers in Vietnam

Vietnam’s data center market is expected to grow at a compound annual growth rate (CAGR) of over 14% between 2020-2025, according to a report by ResearchAndMarkets. This growth is driven by the country’s expanding digital economy and increasing demand for cloud services.

Several international companies, such as Digital Realty, NTT Communications, and FPT Telecom, have already established data centers in Vietnam. In addition, local players such as Viettel IDC, VNG Cloud, and CMC Telecom are also expanding their data center offerings.

The Benefits of Data Centers in Vietnam

Data centers are essential for Vietnam’s digital transformation journey, as they provide secure and reliable storage and management of digital assets. In addition, data centers also offer several other benefits, including:

1. Improved Connectivity: Data centers enable faster and … Read more

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Apple Supplier Expands Investment In Vietnam

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By Joe Fotalattee

According to South China Morning Post (SCMP), Foxconn, Apple’s largest contractor, has decided to invest US$62.5 million into a land lease agreement in the Vietnamese province of Bac Giang to grow its operations there.

The Saigon – Bac Giang Industrial Park Corp. and the Taiwanese behemoth, formerly known as Hon Hai Precision Industry, have agreed to the terms to “meet its operational needs and increase production capacity”.

The site was rented through Foxconn’s subsidiary Fulian Precision Technology Component Co., which is situated in the Quang Chau Industrial Park in the province of Bac Giang. According to the company, the lease is valid until February 2057.

Last August, Foxconn, and a Vietnamese developer agreed to build a new factory in Bac Giang for the production of iPads and AirPods. The deal was worth $300 million.

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Two New Internet Cables In The Works

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Two new cable systems are planned to help bring Vietnam’s total number of available undersea cables to seven. They will go into operation later this year.

With an initial investment of US$439 million, SJC2 has received funding from VNPT and several international partners, including CHT, CMI, DHT, Meta (Facebook), KDDI, Singtel, SKB, Telin, and TICC.

Currently, domestic internet service providers (ISPs) are using SMW-3, AAG, IA, APG, and AAE-1 as their five undersea cable routes.

While SMW-3 is functioning properly, the remaining cables are having problems, which has a significant impact on internet connection traffic from Vietnam.

Major ISPs are actively coordinating with submarine cable systems and ship operators to pinpoint the source of these problems, the incident’s location, and the most appropriate course of action for repairs.

The Ministry of Information and Communication has stated that Vietnam will require at least two to four additional undersea cable routes by 2025 to meet the needs of local internet users and maintain the safety level of Vietnamese communication with the rest of the world.

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Internet Cable Issues

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By Joe Fotalattee

An Internet service provider (ISP) reported  to Tuoi Tre that four out of the five submarine Internet cable systems that link Vietnam to the rest of the world are having issues, with the most recent failure occurring on Saturday and seriously affecting users’ international connections.

On January 28, a cable break about 130 kilometers from a shoreline station in Singapore caused issues with the Intra Asia (IA) cable system, completely cutting off international data traffic from Vietnam to the city-state, according to the Internet service provider.

To connect Internet users in Singapore, the Philippines, Hong Kong, Japan, and Vietnam, this system, with a total length of 6,800 kilometers, has been in use since November 2009.

Additionally, it served as a crucial pathway for the transfer of Internet data from users in Vietnam and other nearby nations to the Americas and Europe.

The connection between Vietnam, Singapore, and Japan was disrupted on January 21 when an incident occurred on the S9 branch of the APG cable system that connects to Singapore.

In the Pacific Ocean, this line, which connects mainland China, Hong Kong, Japan, South Korea, Malaysia, Taiwan, Thailand, and Singapore, spans about 10,400 kilometers.

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The Best Google Alternatives For 2023

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by Joe Fotalattee

The Best Google Alternatives For 2023

Recently, I posted a guide on removing stock bloatware off your android phone.

Tired of big data selling your browsing and app habits? Here’s how I quit Google in 2022 and deleted my Google account: 

Zoho Writer:  Zoho has a whole suite of apps and services and have always been generous with trial accounts. Zoho Writer is free and is a perfect Google Docs replacement as it has Zia spelling and grammar check built into it. 

Maps: https://wego.here.com/ This map software has an unbelievable database of all the locations you need and accurate driving directions. It has free apps for iPhone, Android and you can bookmark their web interface. 

Proton Mail, Calendar

Proton has been around for years and is the gold standard in privacy and encryption. They offer a VPN and Drive account, but you’ll find Dropbox more feature rich for your needs.

Stingle Photos: A 1GB account is free. Stingle promises total privacy and only needs an email and password for an account. They use Libsodium for encryption, a well vetted cryptographic library created by world famous cryptographers.

Signal/Viber Signal and Viber are the most secure, cross-platform apps you can find for chat, and most of your Google contacts will be on one or another. Viber can call any phone number in the world with ViberOut. If someone isn’t on Viber, you can still call them at super cheap international rates. (Unlimited USA calls start from $2.99 a month.)

It is easy to slowly find your favorite services and replace Google ads and analytics if you are a website owner. Cloudflare Analytics, Bing, DuckDuckGo are just a few services. More on how to run an online business without Google in my next installment.… Read more

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New VNG Data Center In District 7

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By Joe Fotalatte

VNG Corporation announced the opening of its new data center in District 7, a Tier 3 facility that is a carrier-neutral facility. Carrier-neutral connectivity provides more stability and flexibility by offering multiple providers. The data center will initially offer 410 racks and will be expanded to 1,600 racks.

Senior Director of VNG Gary McKinnon stated during the Opening Ceremony, “VNG’s Data Center will continue to build on our existing customer services while providing both local and global customers surety in meeting data residency, compliance, and security needs.”

A Tier 3 facility does not require a complete shutdown for maintenance or equipment replacement and can maintain operations in the event of a local or regional power outage. Tier 3 facilities provide 72 hours of backup power and an overall 99.982 percent up-time on an annual basis.

The company’s data center is now operational, offering its Vietnamese clients the best up-time infrastructure for all digital service platforms, safe data storage, and customized cloud solutions.

Additionally, VNG disclosed Up-time Tier III certification for the new data center’s design (TCDD) and hardware for data center installation (TCCF). There are currently only three data centers in Vietnam that meet this requirement. The VNG team earned international certificates in data center operations.

According to VNG’s press release, the opening of the VNG Data Center ensures flexible, secure, and dependable access to data storage for local and international clients in the private and public sectors, and leverages the data solutions to advance their business.

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Big Tech Pays Its Vietnam Tax Bills

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Apple, Google, Microsoft, Tik Tok, Meta (Facebook), and Netflix—account for 90% of revenue on Viet Nam’s e-business on cross-border digital platforms, handing over hundreds of millions of USD in taxes to the government. In particular, Facebook and Google each paid VND 1,748 billion and VND 979 billion.

Forty-two foreign service portals have registered, reported, and paid taxes using Vietnam’s portal over the past eight months.

They were from various nations and areas, including the U. S. Singapore, Hong Kong (China), the Netherlands, the Republic of Korea, Australia, Ireland, Lithuania, and Switzerland.

Foreign service providers contributed US$ 82 billion of the $3,444 billion in taxes collected through the portal. Vietnamese companies paid the remaining VND 1,544 billion.

In 2021, Viet Nam’s e-commerce market increased by 53% to US$ 21 billion, placing the country’s Internet economy third in Southeast Asia in terms of value.